Xilinx posts higher profit; shares drop on outlook

AnnaPrior

Xilinx Inc.
XLNX, +0.19%
said its fiscal fourth-quarter earnings rose 19% as revenue continued to improve.

However, shares fell 7.3% to $48.61 in after-hours trading as reported per-share earnings missed analysts' estimates and the midpoint of the company's revenue guidance also missed Wall Street's expectations.

For the fiscal first quarter, the company forecast revenue to be flat to up 4% quarter-to-quarter, implying a range of $617.8 million to $642.5 million. Analysts polled by Thomson Reuters expected revenue of $638.4 million.

Xilinx, which makes programmable chips for a range of devices, had posted quarterly sales declines for two years before revenue growth turned up in the fiscal second quarter. The company has attributed that growth to new products, such as Kintex-7.

For the period ended March 29, Xilinx reported a profit of $156 million, or 53 cents a share, up from $130.6 million, or 47 cents a share, a year earlier. The latest period included a $10 million loss, or three cents a share, related to the recent redemption of convertible notes. Analysts projected earnings of 55 cents a share.

Revenue rose 16% to $617.8 million, The company had estimated sales growth of 2% to 6% over the fiscal third quarter, implying a range of about $598.6 million to $622 million.

Gross margin widened to 67.6% from 66.1%.

Through Wednesday's close, the stock has risen 14% since the start of the year.

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